Centre releases new rules for calculating Green Credit for tree plantation, focuses on canopy density

The central government has issued fresh rules for calculating green credits under the tree plantation category, shifting the focus from tree count to ecological outcomes like canopy cover and sustained restoration.

The gazette notification, issued by the Ministry of Environment on Saturday, states that industries, cooperatives, and other entities will be eligible for green credit following the completion of a minimum of five years of restoration activities and achieving a minimum canopy density of 40 per cent.

The fresh rules replace the earlier methodology issued in February 2024, where one green credit was granted per tree planted, with a minimum density of 1,100 trees per hectare over two years.

The new rules state: "On completion of minimum five years of restoration activities in the degraded forest land parcel(s), and after achieving a minimum canopy density of forty per cent (40% canopy density), the applicant shall be eligible to submit a claim report in the format specified by the Administrator for award of Green Credit."
The new notification has been issued as part of the Green Credit Rules, which were enacted in 2023. The ambitious government scheme seeks to invite voluntary participation in sectors ranging from plantations to water conservation in exchange for tradable credits.